The global smart personal audio market experienced a 3 per cent year-on-year (YoY) decline, amounting to 110 million units. Developed regions grappled with challenges, while emerging regions showcased resilient growth, revealing a shifting landscape in the industry.
True Wireless Stereo (TWS) devices took a commanding lead, constituting an impressive 73 per cent of total shipments. Apple emerged as the market leader, shipping 23.4 million units and securing a 21 per cent market share. Following closely were Samsung and the domestic brand boAt, underlining the continued prevalence of TWS in the affordable mass-market segments.
A noteworthy development unfolded as shipments of wireless headphones outpaced those of wireless earphones for the first time. Vendors strategically focused on wireless headphones as revenue drivers, contributing to the displacement of wireless earphones by TWS in consumer preferences.
The decline in Q3 was partly attributed to vendors’ strategic decisions to forgo yearly flagship releases. This tactical move extended product refresh cycles, with vendors redirecting their attention to premium models, impacting overall market performance, according to Jack Leathem, Research Analyst at Canalys.
In China, a key player in the audio industry, Huawei experienced significant growth, with a 30 per cent increase in shipments compared to Q3 2022. Leveraging its robust smartphone growth, Huawei successfully cross-sold ecosystem devices, consolidating its position in the smart personal audio sector.
Despite the Q3 setback, analysts anticipate a rebound in the fourth quarter driven by inventory replenishment and the lucrative holiday shopping season. Additionally, improving economic conditions and the expected launch of flagship portfolios from industry giants Apple and Samsung are poised to reignite growth, setting the stage for a more promising 2024.
Canalys forecasts a 3.3 per cent year-over-year increase in total shipments for 2024, indicating a positive trajectory for the smart personal audio market as it navigates through the challenges faced in the recent quarter.
